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  "documentTitle": "PROCEPT BioRobotics Corporation (PRCT)",
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  "notes": "Uses a combination of bar charts and expert testimony to build a case for financial manipulation.",
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      "text": "We believe the counterintuitive DSO trend is likely indicative of Procept pushing systems on customers or relaxing payment terms, possibly as an attempt to boost sales to meet Street revenue expectations.",
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      "text": "...Gross and Net DSOs Continue to Increase (1)",
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      "text": "Despite Consumables Comprising a Growing Percentage of Total Revenue...",
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      "text": "Intuitively, we would expect hospitals, Procept's dominant customer, to pay invoices for low value consumables (handpiece ASP was $3,200 in Q3) faster than they do for the capital purchases of systems (ASP $432,000 in Q3). However, despite consumables growing from 33% to 51% of revenue, DSOs have increased from 47 to 130 days over the past three years.",
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      "text": "SPCM question: “Does it make sense to assume that hospitals pay the smaller invoices for handpieces faster than they pay the larger invoices for systems?” “...your logic makes sense to me...”",
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      "text": "SPCM question: “Does it make sense to assume that hospitals pay the smaller invoices for handpieces faster than they pay the larger invoices for systems?” “...your logic makes sense to me...” — Former Procept Manager, Nov 2024",
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      "text": "(1) Net DSOs calculated as accounts receivable less current deferred revenue. Source: Procept Q3 2024 earnings call transcript, Procept SEC filings, Spruce Point research",
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